Etisalat makes tilt for Zain

Dylan Bushell-Embling
30 Sep 2010
00:00
The UAE's Etisalat is angling to buy a controlling stake in Kuwaiti telco Zain.
Etisalat is in direct talks with shareholders that own a combined 46% of the company over buying their entire stakes, sources told Bloomberg. This would give Etisalat a controlling majority, as about 10% of Zain's shares are held as treasury stock.
The shareholders are thought to include the Kharafi family, who hold nearly a quarter of the company, and other investors associated with them, FT.com said.
Etisalat has offered 1.7 Kuwaiti dinars per share. The value of the entire 46% stake has been alternatively reported as $10.5 billion and $12 billion.
In separate statements, Etisalat has confirmed it made a conditional offer while Zain's board said it was not aware of a deal, meaning Etisalat took the deal directly to shareholders.
Etisalat has more than 100 million customers across 18 countries in the Middle East, Africa and Asia. But it derives around 85% of its income from its UAE operations, and wants to reduce its reliance on the increasingly saturated market.

Pages

Comments
No Comments Yet! Be the first to share what you think!
This website uses cookies
This provides customers with a personalized experience and increases the efficiency of visiting the site, allowing us to provide the most efficient service. By using the website and accepting the terms of the policy, you consent to the use of cookies in accordance with the terms of this policy.